New IRS Retirement Security for American Families
boosting participation in 401(k) and SIMPLE IRA plans. The Treasury and IRS have issued the following guidance on automatic enrollment as part of the retirement and savings initiatives:
For the upcoming 2010 filing season, with a simple check of a box, taxpayers will be able to convert their income tax refunds into I Savings Bonds - even without a bank account or an existing account with Treasury. In future years, taxpayers will be able to purchase I Bonds for their children or grandchildren just as easily. Learn more with these Questions & Answers.
through contributions to retirement plans. Many employees receive substantial cash payments for unused vacation or other similar leave at termination of employment or even annually during employment. The Treasury and IRS have issued the following guidance on contributions in lieu of leave:
A key risk to lifetime savings is when an employee spends his or her lump sum payment, instead of electing to roll over the payment to an IRA or other retirement plan (rollover chart).
IRS.gov has made it even easier for employers to understand their tax-favored retirement plan options and to choose the right plan for their employees as well as their business.